Growth Potential Ahead?

by:
Strategic Asset Allocation & Solutions Group, New York Life Investment Management

While the global economy has gained momentum over the past six months, financial uncertainty and the corresponding risks point to modest growth potential domestically through the end of the year.

We continue to monitor the following contributing factors:

  • Broad economic global growth and falling unemployment in the U.S. should continue for the remainder of the year—the effects of which we expect to carry over to wages and inflation.
  • Global interest rates have remained subdued after the post-U.S. presidential election increase. We continue to believe in the prospect of rising interest rates—albeit very gradual.
  • Headwinds on financial assets caused by full valuations, policy uncertainty, and rising interest rates may limit, but not restrict, potential gains.
  • The growth outlook in Europe has accelerated significantly renewing opportunities for international investment.
  • Passive investment market share has grown dramatically at the expense of active management—a trend we expect to continue.

Given these trends, we have identified four key themes to help guide investors through this fluid and changing landscape:

  1. Industry Changes Require Evolved Solutions
  2. Volatility in a Single-Digit Return Environment
  3. Looking Beyond U.S. Large-Cap Equities
  4. An Uptick in Inflation

All investments are subject to market risk, including possible loss of principal. Diversification cannot assure a profit or protect against a loss in a declining market.

The information and opinions contained herein are for general information use only. MainStay Investments does not guarantee their accuracy or completeness, nor does MainStay Investments assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. There can be no guarantee that any projection, forecast, or opinion in these materials will be realized. Past performance is no guarantee of future results.

For more information about MainStay Funds®, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.

MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. Securities distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302. IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.

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SAS Group

Strategic Asset Allocation & Solutions Group, New York Life Investment Management

NYLIM’s Strategic Asset Allocation & Solutions (SAS) Group invests tactically across the full span of global capital markets, designing comprehensive solutions for a variety of client needs. Managed assets include MainStay Asset Allocation and Retirement Funds, mandates for third parties, and a customized strategy for the New York Life General Account.

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